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Summary: Ontario charges a Land Transfer Tax (LTT) when you buy a home, but first-time buyers can claim a rebate of up to $4,000 off the provincial tax. That fully covers the tax on a home priced around $368,000 or less, and reduces it on more expensive homes. If you buy in the City of Toronto, you can claim a second, municipal rebate of up to $4,475. Your lawyer applies for the rebate at closing.
What is the first-time home buyer Land Transfer Tax rebate?
When you buy a home in Ontario you pay a provincial Land Transfer Tax (LTT), calculated as a percentage of the purchase price. The first-time home buyer rebate refunds part of that tax, up to a maximum of $4,000. Because $4,000 is roughly the provincial LTT on a $368,000 home, buyers at or below that price pay no provincial land transfer tax at all; above it, the rebate trims what you owe. The money you save can go toward furnishing, renovations, or simply settling in.
How much is the Land Transfer Tax rebate worth?
The rebate is tied to your purchase price and caps at $4,000 on the provincial tax. A home priced around $368,000 or less is fully covered, so you pay no provincial LTT. On a pricier home you still owe tax, but the first $4,000 is rebated. You can estimate your own number with the Ontario land transfer tax calculator.
Who qualifies for the rebate?
To claim the Ontario first-time buyer LTT rebate you must:
be at least 18 years of age,
have never owned an eligible home, or an interest in one, anywhere in the world,
not have a spouse who owned a home (or an interest in one) anywhere in the world while they were your spouse,
occupy the home as your principal residence within nine months of closing, and
be a Canadian citizen or permanent resident.
If you buy with someone who is not your spouse and that co-buyer is not a first-time buyer, your rebate is reduced in proportion to your ownership share.
What if my partner already owned a home?
This is the most common question we get, and the answer is: it depends. If you are married or living common-law, your spouse's prior ownership can disqualify you, but only if they owned the home while you were together. A real estate lawyer can walk through the timing with you. If you remain eligible but your partner does not, your refund follows your ownership stake. For example, if your purchase price is high enough to max out the rebate and you own 50% of the property, your provincial rebate is $2,000.
Is there a separate rebate in Toronto?
Yes. If you buy in the City of Toronto you pay a Municipal Land Transfer Tax (MLTT) on top of the provincial LTT, but first-time buyers can claim a municipal rebate of up to $4,475 in addition to the provincial $4,000. Use the Toronto land transfer tax calculator to see your municipal tax and rebate.
How do you claim the rebate?
You generally do not apply on your own. Claiming the rebate is built into closing, and your lawyer or real estate professional registers it as part of the transaction so the rebate is applied directly against the LTT due, reducing what you pay out of pocket. At Ownright we handle this as part of every first-time purchase. It helps to have your documentation ready, including proof of purchase and confirmation that this is your first home.
What other first-time buyer programs can I use?
The LTT rebate is one of several programs. The main ones for Ontario buyers are:
Home Buyers' Plan (HBP): withdraw up to $60,000 from your RRSP, tax-free, toward a qualifying home (up from $35,000 for withdrawals made after April 16, 2024). A qualifying couple can withdraw up to $60,000 each, for $120,000 combined, repaid to your RRSP over 15 years.
First Home Savings Account (FHSA): save up to $8,000 per year, to a $40,000 lifetime maximum, with tax-deductible contributions and tax-free withdrawals for your first home. See our guide to the FHSA.
First-Time Home Buyer's Tax Credit (HBTC): a non-refundable federal credit on a $10,000 base amount, worth up to $1,500 in tax relief.
Municipal Land Transfer Tax rebate: the Toronto rebate of up to $4,475 described above.
For a deeper look at all of these, see our guide to first-time home buyer incentives in Ontario. Note that the federal First-Time Home Buyer Incentive (the shared-equity program) was discontinued in 2024, so if you see it referenced on older sites it is no longer available.
Frequently asked questions
Who qualifies as a first-time home buyer for the LTT rebate?
You must be at least 18, have never owned an eligible home anywhere in the world, occupy the home as your principal residence within nine months of closing, and be a Canadian citizen or permanent resident. A spouse's prior ownership while you were together can disqualify you.
Do I have to apply for the rebate myself?
No. Your real estate lawyer claims it at closing and applies it directly against the land transfer tax you owe, so it lowers your out-of-pocket cost rather than arriving as a later refund.
Can I use the rebate with the HBP and FHSA?
Yes. The LTT rebate, the Home Buyers' Plan, and the First Home Savings Account are separate programs and can be used together for the same purchase.
About the author
Joel Fox is a co-founder and COO of Ownright. He writes about the costs and programs first-time buyers in Ontario need to understand before they close.
At Ownright, we focus entirely on Ontario residential real estate law, and our lawyers apply the first-time buyer land transfer tax rebate as part of every qualifying purchase, so the savings are captured for you at closing. You can start your closing online or get in touch with any questions. For related reading, see our guides on first-time home buyer incentives in Ontario, the First Home Savings Account, and the taxes applicable to a home purchase.
Legal references: Land Transfer Tax Act (Ontario) and O. Reg. 70/91 (first-time purchaser refund); City of Toronto Municipal Code, Chapter 760 (Municipal Land Transfer Tax); Income Tax Act (Canada) (Home Buyers' Plan, FHSA, Home Buyers' Tax Credit).
Important note: This article is not legal or financial advice. No one should act, or refrain from acting, based solely on the information in this post without first seeking appropriate professional advice.
